On 7th March 2023, Energy Transition Townhall was held with the Minister of Natural Resources, Environment and Climate Change (NRECC), YB Tuan Nik Nazmi Nik Ahmad and special guest, Minister of Economy, YB Tuan Rafizi Ramli.

The major challenges of Malaysia to transition are as below :

1. Energy affordability vs Transition to Renewable Energy
2. Our coal powered plants are relatively young and its capex has not been recovered yet so to its not feasible to decommission.
3. Adding new technology to existing power plants to reduce carbon emissions will also see additional capex added without a corresponding increase in generation to cover the cost. Therefore further extending the payback period of the coal generators.
4. Advocate ASEAN energy interconnectivity leveraging on what each other’s resources in cleaner power generation. Malaysia has only limited rivers for hydro power vs Laos with abundant hydro power opportunities.
5. Hydro powered dams are unfortunately also ecologically challenged.

Most of the rest of the townhall Question & Answer (Q&A) with the Ministers are still operational or policy feedback for more subsidies and grants and not how the transition can be achieved.

MICCI raised the question about whether we have the safeguards against the large carbon emitting economies in using ESG and climate change policies as non-tariff trade barriers.

ASEAN combined is only 5% of global carbon emissions. Even if ASEAN can be zero emission, a war in Europe can easily negate the effort.